Net 30 payment terms, explained with examples

Updated: September 28, 2026 · 5 min read

What "net 30" actually means

"Net" refers to the full amount on the invoice after any agreed discounts, and "30" is the number of days the customer has to pay it. The days are calendar days, not business days, and they're counted from the invoice date unless your agreement says otherwise (some contracts count from delivery, or from when the invoice is received).

Because different people count differently, the single most useful thing you can do is put the actual due date on the invoice: "Net 30, due 28 October 2026". Nobody can misread a date.

How to count the days

Start counting the day after the invoice date. Here's the same invoice on different terms:

If a due date falls on a weekend or holiday, many businesses pay on the next working day, but that's a courtesy, not a rule. If it matters to you, say so in your terms.

What 2/10 net 30 means

2/10 net 30 (written "2/10, n/30") offers a discount for paying early: 2% off if paid within 10 days, otherwise the full amount within 30 days.

On a $1,000 invoice, the customer pays $980 by day 10, or $1,000 by day 30.

That 2% looks small, but for the customer it's an unusually good return: giving up the discount to keep the money for 20 more days costs them about 37% a year in annualised terms (2/98 × 365/20). That's why businesses with cash on hand take these discounts, and why offering one is a real incentive to pay fast. For you, it's worth it only if getting paid 20 days sooner is worth more than 2% of the invoice.

Net 30 compared with other common terms

What the law says about late payment

• UK: if no payment date is agreed, a business-to-business payment is legally late 30 days after the customer receives the invoice or the goods or services. Public authorities must pay within 30 days, and businesses can agree up to 60 days, or longer only if it's fair to both sides. Once a payment is late you can claim statutory interest of 8% plus the Bank of England base rate, plus a fixed sum for debt recovery costs that depends on the size of the debt.
• US federal agencies: the Prompt Payment Act requires federal agencies to pay proper invoices on time and, in most cases, to pay interest when they pay late. The rate for July to December 2026 is 4.75% a year.
• US private clients: there's no general federal rule. Late fees and interest depend on your contract and state law, so write them into the agreement before you start.

Wording you can use

On the invoice:

With an early-payment discount:

In a contract, keep it just as specific: state the number of days, what the count starts from (invoice date, delivery or receipt), accepted payment methods, and any late fee. This isn't legal advice, so for large or unusual contracts have the clause reviewed.

Is net 30 right for you?

Net 30 is normal for established business clients, but it isn't compulsory. For a freelancer, 30 days of waiting on every invoice can squeeze cash flow badly. Reasonable alternatives:

• Net 14 or net 15 for smaller clients and one-off jobs.
• A deposit upfront (often a quarter to a half) for larger projects.
• Milestone invoices, so no single invoice covers months of work.

Whatever you choose, agree it before the work starts, put the date on every invoice, and send a reminder the day after it's due. InvoicePilot can send those reminders for you.

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InvoicePilot fills in the numbering, dates, tax and totals for you, sends the invoice as a PDF, and reminds the client when it's overdue. Free plan, no card required.

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This is general information, not legal or tax advice. Invoice and tax rules differ by country and state; check with your tax authority or an accountant for your situation.